The Impact of Supply Chain Integration on Operational Capability in Malaysian Manufacturers
Procedia - Social and Behavioral Sciences(2014)
Abstract
This study aims to explore the effect of supply chain integration (SCI) on operational capability. Using data collected from 201 Malaysian small- and medium-sized manufacturers (SMMs) and rigorous structural equation modeling methods, a total of one main effect and four sub-effects were hypothesized and tested. All the proposed hypotheses were found to be significant, suggesting positive relationships between SCI and operational capability, as well as between sub-constructs of SCI and operational capability. Overall, the findings are particularly important for SMMs owing to resource paucity and the need to draw upon SCI in order to ensure a sustainable operational capability. Recommendations for how to improve operational capability are provided accordingly.
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Key words
supply chain integration,operational capability,small- and medium-sized manufacturers
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